Controversies about the Accounting Treatment of Transfer Fee in the Football Industry

Vladan Pavlović; Srećko Milačić; Isidora Ljumović

doi:10.7595/management.fon.2014.0001

Vladan Pavlović University of Pristina, Faculty of Economics (Kosovska Mitrovica)
Srećko Milačić University of Pristina, Faculty of Economics (Kosovska Mitrovica)
Isidora Ljumović Economic institute,Belgrade

DOI: https://doi.org/10.7595/management.fon.2014.0001

Abstract

Investments in sportsmen traditionally were considered as costs, together with transfer fees. From the second half of the twentieth century transfer fees are considered as assets. However, in the late twentieth and early twenty-first centuries the opinion prevailed that requirements for capitalization are met, and that capitalization and disclosure as intangibles are an obligatory procedure in almost all countries with a developed accounting tradition. There is the question of justification of the above procedure, having in mind that the contribution of the contracted fee for transfers cannot be determined related to the financial benefit of clubs, that players are often alienated before the end of the contract, and that the requirements for the control cannot be fully met.

Author Biographies

Vladan Pavlović, University of Pristina, Faculty of Economics (Kosovska Mitrovica)

Vladan Pavlovic was born on 16th December, 1971 in Belgrade. He received his Bachelor and MSc degrees from the Faculty of Economics in Subotica, and a PhD from the Faculty of Business Studies, Megatrend University, where he was appointed assistant and associate professor in the field of accounting and auditing. He was appointed a full time professor in 2012 at the Faculty of Economics in Pristina (Kosovska Mitrovica). He has published numerous papers in international and national journals

Srećko Milačić, University of Pristina, Faculty of Economics (Kosovska Mitrovica)

Srecko Milačić was born on 12th March, 1965 in Priština. He graduated from the Economics Faculty in Priština with honours. He earned his master’s degree at the Faculty of Economics in Belgrade and a PhD at the Faculty of Economics, University of Priština, where he earned all scientific titles. He was a scholar of the Japanese “Sasakawa” Foundation. In addition to working at the Economics Faculty in Priština, he was hired as an associate at the Institute for Economic Research in Priština and a NICEF associate where he participated in the development of many investment projects and assessments. In the period 2001-2006 he was head of the Department of Finance and Foreign Trade. He was appointed the Chairman of the Council of the Faculty in 2004. Since 2006 he has served as Dean of the Faculty of Economics in two terms. From October 2012 he is the Rector of the University of Priština.

Isidora Ljumović, Economic institute,Belgrade

Isidora Ljumović was born on 9th of April, 1980 in Zaječar. She graduated from the Faculty of Organizational Sciences, University of Belgrade. She received her MSc from the Faculty of Business Studies, Megatrend University, and a PhD from the Faculty of Economics, University of Niš. She was appointed assistant professor at the Faculty of Business Studies, Megatrend University. In 2012 she acquired the title of Research Associate. She has published numerous papers in international and national journals.